MEMPHIS, Tenn.–(BUSINESS WIRE)–#GMF–In its ongoing desire to fully cooperate with HUD, GMF-Preservation of
Affordability Corp (GMF) voluntarily agreed to the appointment of a
receiver over the Warren and Tulane Apartments. GMF, the Receiver, and
the lender intend to work together for the best interests of the
properties and their residents.
GMF contributed large capital advances for both properties until the day
HUD abated our contract this February. Immediately upon the abatement of
the rent subsidies, HUD provided some reduced funding directly to GMF’s
third party manager, LEDIC, for site maintenance and operations for
Warren and Tulane while HUD and the City of Memphis developed a plan to
relocate residents. Both properties are now under the full control of
the court-appointed Receiver.
“While we disagree with many of the allegations in a complaint filed by
the lender, we fully supported the appointment of the receiver because
it is in the best interest of the property and the residents,” says Rev.
Richard Hamlet, GMF President and CEO. “Going forward, GMF will continue
to work closely with HUD and the receiver to market these properties and
find a new owner who is willing and able to rehabilitate the properties
for the benefit of the residents and their neighboring communities,“
added Rev. Hamlet.
In response to frivolous claims that GMF is not making adequate
investments in its affordable housing properties, Reverend Hamlet added,
“GMF invested millions of dollars in Warren and Tulane but unfortunately
we were not successful in responding to the challenging needs of these
historically troubled properties”.
Warren and Tulane did not evolve into problem properties overnight;
rather, they have been troubled for decades. GMF recognized that these
were properties in need when it acquired them in 2011 and advanced
capital to make much needed and long-overdue repairs and improvements
for the benefit of its residents, repairs and improvements which should
have been made years prior to GMF’s acquisition.
“GMF’s mission is to go into properties with the most need and look for
solutions to problems that existed long before GMF acquired them. GMF
continues to be committed to finding solutions to systemic issues in
low-income housing for the benefit of all residents, whether these
solutions involve the continued investment of large amounts of capital
in its properties, the sale of certain properties, or both,” stated Rev.
GMF-Preservation of Affordability Corp. is a Global Ministries
Foundation company that invests in real estate opportunities that
provide affordable housing for low to moderate income residents across
the United States. GMF ministers to the physical, spiritual and
emotional needs of our residents, at no cost to them and on a strictly
GMF Media Relations
Audrey Young, 202-256-4521